Private Ltd or Public Ltd Which to Choose When Going For One Person Company Registration in India

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If you don’t need so many directors or shareholders in your business, then here is a new concept for you, i.e. one person company. Although this concept is not new as it is already used in many countries such as US, Pakistan, Singapore, and China. But it is a new concept for India as it was introduced in India with the Companies act 2013. This new concept only needs one person to handle the company that can be a shareholder as well as the director of the company. The concept was started in 2013 in India and it was found that around more than 1400 one-person companies were found to be registered at the end of 2014. This blog enlists the reasons why one should go for one person company registration.

Reasons why should a person choose one person company registration in India:

  1. Limited liability offers more opportunities: Since the one person company has limited liability because this type of company has only 1 person responsible for holding all the shares, therefore, it offers more opportunities as profits are not be shared between so many people.
  2. The funding process is simpler: One person company is allowed to raise their funds via financial institutions, investors, or venture capital, just like a private company does. Therefore, the funding process in One Person Company is also easier and simpler.
  3. Easy decision making: Since the one person company only involves one person that is responsible for making all the decisions for the company, so this means no one else is going to interfere in your business operations and thus making decision making easier.
  4. Advantages that all small scale industries have: Just like any small scale industry, a one person company can also avail benefits like lesser interest rates on loans, benefits of foreign trade policy, funding from any bank without the need of submitting any security and various other benefits. Such advantages are helpful for rising up any one person company in starting years.
  5. Less burden of compliance’s: Since one person company has to face the lesser burden of compliance’s in comparison to private limited companies that require lots of compliance’s, therefore, one person company can be more focused towards the functional business operations.
  6. Isolated legal entity: Since a one person company is an isolated legal entity, so it is the wish of an entrepreneur to do whatever he or she wants to do for the company.

Process for one person company registration:

  1. Apply for the Director Identification Number and Digital Signature Certificate as well.
  2. Apply for the availability of the name of the company.
  • Writing the consent of the nominee.
  1. Filing MOM.
  2. Acquiring incorporation certificate.

If you want to start the business at the lowest level, then the concept of One Person Company is best for you. Also, if you don’t want interference of anyone in your business, even then this type of company suits you a lot. To start one person company, get your one person company registration done from LexOracle that is one of the prominent legal service providers.

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